Food producer Orkla Foods Romania (OFR), known for its Bunatati de la Bunica brand, late last week acquired 100% of the stock in Royal Brinkers Romania, the second-largest domestic producer of margarine in the country.
The Romanian unit of the Norwegian food industry group Orkla Foods took over the Royal Brinkers Romania stock from RBH International and from the Duch family themselves, the Brinkers.
The two sides decided not to disclose the value of the deal. According to market sources, the transaction was worth as much as 14-15 million euros, considering that Royal Brinkers operated at a profit, the company ranked second on the local margarine market and owned a portfolio of top brands on the domestic market. "The market is consolidating with a view to the moment Romania joins the European Union, as we will no longer speak about the Romanian market, but about the European one," stated Aliz Kosza, CEO of Orkla Foods Romania. Kosza also said Royal Brinkers is a business existing on a segment where Orkla can make the best use of market synergies to the benefit of consumers.
Royal Brinkers Romania last year derived net revenues worth around 15 million euros and gross income of 1.1 million euros. The company has almost 200 employees. In line with the web site of the Ministry of Public Finances, Orkla Foods Romania last year reported turnover worth 76.1 million RON (18.7 million euros), 17% higher in RON from the previous year. Margarine has been the strongest growth engine for the Norwegians'' business on the domestic market.
OFR owns Wiesana, Fruhstuck margarine and Bunatati de la Bunica. In line with its own data, in the first eight months of this year OFR registered its best performance, especially with its professional margarine range for patisseries and confectionary shops. Royal Brinkers, which entered the Romanian market in 1993, ranks second in terms of margarine for domestic use, through the Linco, Holland and Unirea brands. The company recently also invested to develop its frozen dough plant in Iasi. The Dutch did not explain why they chose to leave Romania.
In the wake of the deal, Orkla will acquire the two platforms owned by Royal Brinkers in Romania: the margarine factory in Bucharest and the frozen dough factory in Iasi. "Following takeover, our priority will be to integrate the company and its employees into Orkla Foods Romania, and to then establish the most fitting strategy to expand the business," Kosza also said. Orkla group is one of the largest Norwegian companies and entered Romania in 2002 by purchasing Topway Foods.
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